IHS buys 2,115 telecom towers in Brazil for $315 mn

IHS Holding has signed an agreement to acquire Sao Paulo Cinco Locacao de Torres (SP5), a Grupo Torresur (GTS) portfolio company, for $315 million. SP5’s portfolio includes 2,115 telecommunication towers across Brazil.
IHS Towers
IHS Towers will own approximately 7,000 towers in Brazil, in addition to the secondary fiber network covering approximately 6.4 million homes passed that it currently operates.

The acquisition is expected to deliver revenue and adjusted EBITDA of approximately $38 million and $36 million, respectively, in the first full year following closing.

This transaction forms a key part of IHS Towers’ inorganic growth strategy in Latin America as IHS seeks to become the leading emerging market telecommunications infrastructure provider, as SP5’s sites are located in 25 of Brazil’s 27 states. SP5 will be integrated into IHS Towers’ existing Brazilian business with no employees transferring to IHS Towers under the acquisition.

“The acquisition of GTS’ SP5 portfolio will be our fifth transaction since we entered the region two years ago. In the SP5 portfolio there are 2,115 sites strategically located across Brazil, increasing the attractiveness of IHS’ portfolio to our customers,” Sam Darwish, IHS Towers Chairman and CEO, said in a statement.

IHS Towers has more than 38,000 towers pro forma across its 11 markets, including Brazil, Cameroon, Colombia, Caote d’Ivoire, Egypt, Kuwait, Nigeria, Peru, Rwanda, South Africa and Zambia.